Amazon begins laying off employees to cut costs amid economic downturn: report
Days after the Meta and Twitter layoffs, US tech and e-commerce giant Amazon also began scaling back unprofitable ventures amid a deepening economic downturn. Jamie Zhang, a software engineer working at Amazon, in a post on LinkedIn, opened up about his connections being fired from the company, according to a Business Today report.
“My year and a half tenure at Amazon Robotics AI ended with a surprising layoff (our entire robotics team was gone!). It’s been a great journey to work alongside amazing leaders and engineers , and for my part to help build large-scale distributed systems through AWS for our robotic CI/CD pipelines. Thank you all for making me a better software engineer in the process. For the new chapter, I’m open to local (CO) and US remote opportunities for software engineering positions. Referrals and direct messages are welcome!” Zhang said in a LinkedIn post.
Last week, the company had just announced a hiring freeze, according to an internal memo sent by a senior executive, according to the Business Today report.
Amazon.com is the first public company in the world to lose a trillion dollars in market value. This is the result of a combination of rising inflation, tighter monetary policy and disappointing earnings updates that sparked a historic sell-off in the stock this year, according to a Bloomberg report.
He added that Amazon shares fell 4.3% on Wednesday, taking its market value to around $879 billion from a record close of $1.88 trillion in July 2021. Microsoft also lost 889 billion from a November 2021 peak. This year, the top five U.S. tech companies by revenue recorded a market value of around $4 trillion.
Operating income decreased to $2.5 billion in the third quarter from $4.9 billion in the third quarter of 2021. Net income decreased to $2.9 billion in the third quarter, or 0, $28 per diluted share, compared to $3.2 billion, or $0.31 per diluted share, in the third quarter of 2021.
Mark Zuckerberg, CEO of Facebook’s parent company Meta, also confirmed the company’s layoffs on Wednesday. He said the company decided to reduce the size of its team by about 13% and lay off more than 11,000 employees.
The layoffs are part of a cost-cutting plan at Meta following disappointing results and falling revenue. The staff cuts, part of the first major budget cut since Facebook was founded in 2004, reflect a sharp slowdown in digital advertising revenue, a faltering economy on the brink of recession and Zuckerberg’s heavy investment in a push. virtual reality speculative called the Metaverse. .
It came days after another social media giant, Twitter, under new ownership by Tesla CEO Elon Musk, laid off 50% of its workforce to cut costs.
Read all Latest business news here